Green Dot Bank gets proposed Federal Reserve order over allegedly faulty consumer practices
Green Dot Bank, which partners with Walmart to provide digital banking services, said it has received a proposed consent order from the Federal Reserve over allegedly faulty consumer protection and anti-money laundering practices.
Green Dot Bank, best known for partnering with Walmart to provide basic digital banking services to customers, said it has received a proposed consent order from the Federal Reserve over allegedly faulty consumer protection and anti-money laundering practices.
In a filing this week, Green Dot said the consent order — a type of agreement with a regulator that can entail increased monitoring, specific directives and enforcement — relates to activities that stretch back as far as 2017. It noted new leadership had begun arriving in 2020, with current CEO George Gresham appointed in 2022 — but did not specify whether the order covered issues that had occurred since.
Green Dot estimated that its liability related to the proposed order could be $20 million, but warned investors that losses could reach as much as $50 million, according to the filing. Its stock closed down 2% Friday.
In an earnings call this week, Gresham said Green Dot does not expect any “incremental restrictions to be placed on our business or operations.”
“We take regulatory compliance very seriously, and we have invested considerably in people, in time, and process improvement and product improvement and in money to improve our capabilities in this regard,” Gresham said, according to a transcript of the call. “We are not the same management team or the same company that we were in 2017.”
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